Ulster County seeks partnership with IDA

Administrative services would cost $20,000

KINGSTON - Ulster County Executive Mike Hein made his pitch for partnership to the Industrial Development Agency at its meeting Wednesday. Having the IDA contract with the county for administrative services like state reporting will create a "unified approach" to economic development, Hein said. In his 2013 budget, Hein creat...

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By Jessica DiNapoli

recordonline.com

By Jessica DiNapoli

Posted Nov. 23, 2012 at 2:00 AM

By Jessica DiNapoli

Posted Nov. 23, 2012 at 2:00 AM

» Social News

KINGSTON — Ulster County Executive Mike Hein made his pitch for partnership to the Industrial Development Agency at its meeting Wednesday.

Having the IDA contract with the county for administrative services like state reporting will create a "unified approach" to economic development, Hein said. In his 2013 budget, Hein created an Office of Business Services, led by March Gallagher, currently the executive's deputy director of economic development.

Hein highlighted the county's ability to "knock down bureaucratic walls" and reduce red tape for businesses seeking regulatory approvals. IDA Chairperson David O'Halloran agreed, adding that Gallagher has been able to get answers from the state's notoriously tight-lipped economic development agency, Empire State Development, within 24 hours.

O'Halloran supports contracting with the county.

The IDA currently works with the Ulster County Development Corp. for the administrative services. But, UCDC CEO Lance Matteson resigned earlier this year, and Hein proposed eliminating funding to UCDC in his 2013 budget.

Ulster's services will come at an annual fee of $20,000. The IDA paid UCDC $85,000 per year, plus additional fees depending on projects.

The IDA could hire an employee as its own in-house administrator instead of contracting with the county.

O'Halloran complained that in the past the IDA had to contend with mistakes made by UCDC. The IDA sometimes wouldn't hear about projects before construction crews had already started building — too late for any of the benefits the agency can provide, he said.

Hein is willing to accept accountability and responsibility for anyone administering services to the IDA, O'Halloran said.

The board also revisited its ongoing quest to rein in IDA benefits for businesses that don't create the projected number of jobs.

Nick Pizza, owner of the Hudson Valley Sportsdome, first thought he would comply with the IDA in its plans to snip $20,000 off his benefits over the next three years. He was supposed to create 16 jobs, but now only has two full-timers on staff.

He has since had a change of heart.

Pizza said he's considering simply letting the IDA terminate his payment-in-lieu-of-taxes agreement, a potential penalty in the new rule if he doesn't voluntarily reduce his future benefits. The IDA's new enforcement policy isn't "sitting well" with him.

"I'm willing to play by their rules," Pizza said. "But I'm not sure if they are."

On Wednesday, the IDA approved sending letters to Pizza and to a John J. Lease office park in Lloyd detailing their enforcement plan. The board also agreed to move forward with plans to reduce future PILOT benefits for Skate Time 209 by 27.5 percent, or about $8,000 spread over four years.